Surf Air Mobility Inc. (NYSE: SRFM), a leading regional air mobility platform, today announced the successful closing of a Senior Secured Term Loan from Comvest Partners, a multi-billion-dollar investment management firm. The financing package includes a $44.5 million fully funded term loan and a $5.5 million delayed draw term loan designated for interest payments over the first 18 months.
Oliver Reeves, Chief Financial Officer of Surf Air Mobility, commented, “Today marks a significant milestone in restructuring our balance sheet—addressing near-term liquidity challenges, reducing our cost of capital, and minimizing equity dilution. This strategic move strengthens our financial foundation and positions Surf Air Mobility for sustainable growth. Additionally, we’ve reduced liabilities and are now in a stronger position to optimize our business structure and seize new opportunities.”
This financing serves as a catalyst for the Company to advance its transformation, setting the stage to achieve its long-term vision of integrating software and electrified aircraft to become the world’s leading regional air mobility platform.
Surf Air Mobility’s four-phase transformation plan includes:
Phase 1: Transformation (Completed) – Restructured capital, fortified balance sheet, new management team, and operational synergies realized from the Southern Airways merger.
Phase 2: Optimization (2025-2026) – Focus on optimizing airline operations, refining the On Demand business model, and enhancing efficiencies through SurfOS.
Phase 3: Expansion (2026-2027) – Accelerate expansion of key routes using enhanced infrastructure and proprietary software developed with Palantir Technologies.
Phase 4: Acceleration (2027 and beyond) – Increase revenue and margins through electrification technologies and further development of the technology platform.
Deanna White, Interim CEO and Chief Operating Officer, said, “As we enter the next phase of our transformation, our focus will be on optimizing operations and capital allocation to enhance profitability in the near term. In the longer term, phases three and four will enable us to emerge as the technology-driven platform best positioned to capture a significant share of the $75 billion global regional air mobility market.”
The Company also noted that a copy of its term loan agreement and related documents will be filed with the Securities and Exchange Commission on November 14, 2024.
Surf Air Mobility is a Los Angeles-based regional air mobility platform and the largest commuter airline in the U.S. by scheduled departures as well as the largest passenger operator of Cessna Caravans in the U.S. In addition to its airline operations, Surf Air is currently developing an AI powered airline software operating system and is working toward certification of electric powertrain technology. We plan to offer our technology solutions to the entire regional air mobility industry to improve safety, efficiency, profitability and reduce emissions.